South African retail giant Pick n Pay has reported a substantial increase in the value of monthly cryptocurrency payments, soaring from approximately $1,350 to $54,000. The regions of Gauteng, KwaZulu-Natal, and the Western Cape account for the lion’s share of these transactions, with shoppers spending around $54,000 (ZAR 1 million) on groceries, data, and municipal bills using Bitcoin (BTC).
Pick n Pay began accepting BTC as a payment method at all its stores in early 2023, following the Financial Sector Conduct Authority’s (FSCA) declaration of the crypto asset as a financial product. Deven Moodley, head of value-added services, financial services, and the mobile division at Pick n Pay, emphasized that crypto payments are an integral part of the retailer’s Ways2Pay strategy, aimed at offering a variety of payment mechanisms.
Moodley said,
For years, crypto was something only computer boffins knew about, but Pick n Pay has paved the way for our shoppers to be early adopters in using their digital currency as a method of everyday payment,
The retailer’s innovative cryptocurrency payments system has attracted tech-savvy consumers and modernized payment methods, making Pick n Pay the only major retailer in South Africa to embrace cryptocurrency. The surge in usage is particularly evident in the Western Cape, Gauteng, and KwaZulu-Natal, with half of all transactions being R500 or less, capped at a maximum of R10,000.
Carel van Wyk, founder of Money Badger, which has facilitated the enablement of crypto payments for Pick n Pay, noted that the transition from its perception as a speculative asset to being recognized as a digital currency partially accounts for the increase in crypto transactions.
With nearly 10% of South Africans owning crypto assets, according to a 2023 FSCA report, the country mirrors global trends in cryptocurrency adoption. Pick n Pay’s embrace of Bitcoin payments not only meets the needs of a growing segment of tech-savvy consumers but also positions the retailer at the forefront of financial innovation in South Africa.
The adoption of cryptocurrency payments is expanding globally. Recent innovations in the crypto payment space include a new payment system by the BRICS nations to leverage digital currencies and blockchain technologies to enhance cross-border transactions.
